The State: The 2006 economic outlook for regions of the world - EU solid recovery in 2006

The State: The 2006 economic outlook for regions of the world

In the 25-nation European Union, economic activity will see a “sound recovery” in 2006, piggybacking on robust growth in the global economy. The European Commission, the EU’s executive agency, forecast growth of 1.5 percent in 2005 and 2.1 percent in 2006 for the entire EU. Growth hit 2.4 percent last year, a figure it is predicted to reach again in 2007. The forecast sees inflation in the entire EU and the 12-nation euro zone at 2.3 percent in 2005 because of high oil prices, easing to 2.2 percent in 2006 and 1.9 percent in 2007. Unemployment is on the way down, it said, predicting a drop by almost 1 percentage point to 8.1 percent by 2007.